Securities (Tables)

3 Months Ended

Mar. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Reconciliation of fair value of securities

The following table presents a summary of the amortized cost, gross unrealized holding gains and losses, other-than-temporary impairment recorded in other comprehensive income and fair value of securities available for sale and securities held to maturity for the periods below:

	March 31, 2013												December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Unrealized Losses Other			Other-Than- Temporary (Impairment)/Recovery			Fair Value		Amortized Cost		Gross Unrealized Gains		Unrealized Losses Other			Other-Than- Temporary (Impairment)/Recovery			Fair Value
	(Dollars in thousands)
Available for sale securities
U.S. Government agency securities	$	20,051	$	685	$	—		$	—		$	20,736	$	20,053	$	769	$	—		$	—		$	20,822
Agency mortgage-backed securities	212,191		10,642		(256		)	—			222,577		209,381		12,158		(114		)	—			221,425
Agency collateralized mortgage obligations	71,631		899		(223		)	—			72,307		67,412		1,001		(37		)	—			68,376
Private mortgage-backed securities	3,101		—		—			269			3,370		3,227		—		—			305			3,532
Single issuer trust preferred securities issued by banks	2,244		29		—			—			2,273		2,255		—		(15		)	—			2,240
Pooled trust preferred securities issued by banks and insurers	8,185		—		(2,253		)	(2,640		)	3,292		8,353		—		(2,415		)	(2,957		)	2,981
Marketable securities	10,791		407		(60		)	—			11,138		9,875		92		(57		)	—			9,910
Total available for sale securities	$	328,194	$	12,662	$	(2,792	)	$	(2,371	)	$	335,693	$	320,556	$	14,020	$	(2,638	)	$	(2,652	)	$	329,286
Held to maturity securities
U.S. Treasury securities	$	1,013	$	113	$	—		$	—		$	1,126	$	1,013	$	121	$	—		$	—		$	1,134
Agency mortgage-backed securities	63,897		3,698		—			—			67,595		72,360		4,233		—			—			76,593
Agency collateralized mortgage obligations	136,745		2,512		(350		)	—			138,907		97,507		2,875		(2		)	—			100,380
State, county, and municipal securities	916		14		—			—			930		915		11		—			—			926
Single issuer trust preferred securities issued by banks	1,513		17		—			—			1,530		1,516		10		—			—			1,526
Corporate debt securities	5,006		316		—			—			5,322		5,007		258		—			—			5,265
Total held to maturity securities	$	209,090	$	6,670	$	(350	)	$	—		$	215,410	$	178,318	$	7,508	$	(2	)	$	—		$	185,824
Total	$	537,284	$	19,332	$	(3,142	)	$	(2,371	)	$	551,103	$	498,874	$	21,528	$	(2,640	)	$	(2,652	)	$	515,110

Schedule of contractual maturities of securities

A schedule of the contractual maturities of securities available for sale and securities held to maturity as of March 31, 2013 is presented below:

	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	159	$	165	$	240	$	241
Due after one year to five years	7,615		8,037		6,412		6,795
Due after five years to ten years	89,343		92,394		1,013		1,126
Due after ten years	220,286		223,959		201,425		207,248
Total debt securities	$	317,403	$	324,555	$	209,090	$	215,410
Marketable securities	$	10,791	$	11,138	$	—	$	—
Total	$	328,194	$	335,693	$	209,090	$	215,410

Schedule of gross unrealized losses and fair value of investments

The following tables show the gross unrealized losses and fair value of the Company’s investments in an unrealized loss position, which the Company has not deemed to be OTTI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

	March 31, 2013
		Less than 12 months					12 months or longer					Total
	# of holdings	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in thousands)
Agency mortgage-backed securities	14	$	36,218	$	(256	)	$	—	$	—		$	36,218	$	(256	)
Agency collateralized mortgage obligations	7	69,639		(573		)	—		—			69,639		(573		)
Pooled trust preferred securities issued by banks and insurers	2	—		—			2,062		(2,253		)	2,062		(2,253		)
Marketable securities	11	$	4,831	$	(60	)	$	—	$	—		$	4,831	$	(60	)
Total temporarily impaired securities	34	$	110,688	$	(889	)	$	2,062	$	(2,253	)	$	112,750	$	(3,142	)

	December 31, 2012
		Less than 12 months					12 months or longer					Total
	# of holdings	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in thousands)
Agency mortgage-backed securities	17	$	23,814	$	(114	)	$	—	$	—		$	23,814	$	(114	)
Agency collateralized mortgage obligations	2	17,677		(39		)	—		—			17,677		(39		)
Single issuer trust preferred securities issued by banks and insurers	2	$	2,240	$	(15	)	$	—	$	—		$	2,240	$	(15	)
Pooled trust preferred securities issued by banks and insurers	2	$	—	$	—		$	2,069	$	(2,415	)	$	2,069	$	(2,415	)
Marketable securities	15	$	6,613	$	(57	)	$	—	$	—		$	6,613	$	(57	)
Total temporarily impaired securities	38	$	50,344	$	(225	)	$	2,069	$	(2,415	)	$	52,413	$	(2,640	)

Schedule of pertinent information

The following tables summarize pertinent information as of March 31, 2013, that was considered by management in determining if OTTI existed:

	Class	Amortized Cost (1)		Gross Unrealized Gain/(Loss)			Non-Credit Related  Other- Than-Temporary (Impairment)/Recovery			Fair Value		Total Cumulative Credit Related Other-Than- Temporary Impairment			Total Cumulative Other-Than- Temporary impairment to Date
	(Dollars in thousands)
Pooled trust preferred securities
Pooled trust preferred security A	C1	$	1,283	$	—		$	(889	)	$	394	$	(3,676	)	$	(4,565	)
Pooled trust preferred security B	D	—		—			—			—		(3,481		)	(3,481		)
Pooled trust preferred security C	C1	506		—			(320		)	186		(482		)	(802		)
Pooled trust preferred security D	D	—		—			1			1		(990		)	(989		)
Pooled trust preferred security E	C1	2,081		—			(1,432		)	649		(1,368		)	(2,800		)
Pooled trust preferred security F	B	1,894		(1,221		)	—			673		—			—
Pooled trust preferred security G	A1	2,421		(1,032		)	—			1,389		—			—
Total pooled trust preferred securities		$	8,185	$	(2,253	)	$	(2,640	)	$	3,292	$	(9,997	)	$	(12,637	)
Private mortgage-backed securities
Private mortgage-backed securities-one	2A1	$	2,177	$	—		$	153		$	2,330	$	(766	)	$	(613	)
Private mortgage-backed securities-two	A19	924		—			116			1,040		(85		)	31
Total private mortgage-backed securities		$	3,101	$	—		$	269		$	3,370	$	(851	)	$	(582	)
Total		$	11,286	$	(2,253	)	$	(2,371	)	$	6,662	$	(10,848	)	$	(13,219	)

(1) The amortized cost reflects previously recorded OTTI charges recognized in earnings for the applicable securities.

Summary of percentage of pertinent information

	Class	Number of Performing Banks and Insurance Cos. in Issuances (Unique)	Current Deferrals/ Defaults/Losses (As a % of Original  Collateral)	Total Projected Defaults/Losses (as a % of Performing Collateral)	Excess  Subordination (After Taking  into Account Best  Estimate of Future Deferrals/ Defaults/Losses) (1)	Lowest credit Ratings to date (2)
Pooled trust preferred securities
Trust preferred security A	C1	57	32.12%	18.15%	—%	C (Fitch & Moody's)
Trust preferred security B	D	57	32.12%	18.15%	—%	C (Fitch)
Trust preferred security C	C1	49	29.29%	15.16%	0.49%	C (Fitch & Moody's)
Trust preferred security D	D	49	29.29%	15.16%	—%	C (Fitch)
Trust preferred security E	C1	48	26.50%	16.62%	0.98%	C (Fitch & Moody's)
Trust preferred security F	B	32	25.08%	18.83%	31.31%	CC (Fitch)
Trust preferred security G	A1	32	25.08%	18.83%	56.37%	CCC+ (S&P)
Private mortgage-backed securities
Private mortgage-backed securities-one	2A1	N/A	6.10%	13.13%	—%	D (Fitch)
Private mortgage-backed securities-two	A19	N/A	3.99%	6.42%	—%	C (Fitch)

(1) Excess subordination represents the additional default/losses in excess of both current and projected defaults/losses that the security can absorb before the security experiences any credit impairment.

(2) The Company reviewed credit ratings provided by S&P, Moody’s and Fitch in its evaluation of issuers.

Schedule of Other Than Temorary Impairment [table text block] [Table Text Block]

The following table shows the total OTTI that the Company recorded for the periods indicated:

	Three Months Ended
	March 31
	2013			2012
	(Dollars in thousands)
Gross change in OTTI recorded on certain investments (gain/(losses))	$	281		$	274
Portion of OTTI gains (losses) recognized in OCI	(281		)	(274		)
Total credit related OTTI losses recognized in earnings	$	—		$	—

Summary of cumulative credit related component of OTTI

The following table shows the cumulative credit related component of OTTI for the periods indicated:

	Three Months Ended
	March 31
	2013			2012
	(Dollars in thousands)
Balance at beginning of period	$	(10,847	)	$	(10,771	)
Add
Incurred on securities not previously impaired	—			—
Incurred on securities previously impaired	—			—
Less
Realized gain/loss on sale of securities	—			—
Reclassification due to changes in Company’s intent	—			—
Increases in cash flow expected to be collected	—			—
Balance at end of period	$	(10,847	)	$	(10,771	)